Luxembourg: Your Logistics Partner in Europe

By Georges Faber

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Global production outsourcing has led to increased logistical challenges. The need for efficient, time and cost effective supply chain management has created new opportunities for integrated logistics providers.

Luxembourg continues its positioning as a European hub for contract, air-freight based and value-added logistics to meet these challenges.

Luxembourg provides American companies with many strategic advantages for conducting successful business in Europe. Located at the crossroads of the German and French cultures, our country offers outstanding political, legal, economic and social stability.

Easy access to decision makers, efficient communication and transportation infrastructures reinforce Luxembourg's position as a competitive European hub for the export of goods and services.

Luxembourg lies at the heart of Europe's strongest consumer markets, right on the main North-South and East-West highway and train corridors. The global network of Cargolux, the largest all-freight carrier in Europe, includes multiple daily destinations to the US and the Middle East and makes Luxembourg a true global distribution platform.

Luxembourg's international airport is the 5th largest freight airport in Europe (796,675 tons in 2005). A large part of these shipments come directly from China, India and Taiwan. NEC Computers now imports all of its computers and MP3 players from China through Luxembourg.

Luxembourg's state-of-the-art Cargo Center offers the highest levels of professionalism. The ground handling of airfreight demands superlative levels of security, reliability, flexibility and speed. A 747-400F freighter plane can be customs cleared and unloaded in just four hours, faster than in larger European freight hubs.

Luxembourg-based operators regularly praise the easy access to and constructive dialogue they enjoy with the administrative departments involved with logistics and transportation. Land is available in well-equipped dedicated industrial parks located close to the airport, major highways and train links.

Our country's overall tax level is one of the most competitive in Europe. Luxembourg has the lowest personal income tax rate in the EU and also offers the lowest VAT rate (15%). There is no requirement for VAT-prefinancing on goods imported from outside the EU, a unique advantage that most other freight hubs do not offer.

Automotive, electronic and other manufacturers can also access the know-how and the efficiency of Luxembourg's certification agency (SNCH) which offers EU wide recognized services.

Kuehne + Nagel, one of the world's leading logistics providers, has been present in Luxembourg since 1970, currently employing a staff of 360 at four locations. This includes its Lead Logistics Control Centres, of which the European headquarters was established in Luxembourg in 2004.

Of Luxembourg's logistics capabilities, Kuehne + Nagel has stated:

"The Grand Duchy is an ideal location for a logistics hub, especially for goods imported via airfreight due to the importance of the airport and the presence of a global player like Cargolux. The skilled and relatively inexpensive workforce is ideally suited to providing added value services as part of the supply chain. The geographical location and dense road and rail network enables optimised and efficient distribution out of Luxembourg."

These and other advantages make Luxembourg a unique European location for logistics and in particular for providing sophisticated value-added services.

Our country is also home to industry-leading companies of native origin, including Arcelor Mittal, the world's largest steel producer and SES, a global leader in satellite-based telecommunications and television services.